Architecture Firm businesses typically sell for 1.5–3.0× SDE in 2026. This guide covers verified architecture firm valuation multiples, key value drivers, typical deal structures, and market trends for brokers and buyers.
Last verified: 2026 | Sources: IBBA Market Pulse, BVR, BIZCOMPS transaction database
| Metric | 2026 Range |
| SDE multiple | 1.5–3.0× SDE |
| EBITDA multiple | 4–6× EBITDA |
| Revenue multiple | 0.4–0.7× annual net revenue (fees minus consultant pass-throughs) |
| Average deal size | $300K–$5M |
| Time to sell | 9–15 months |
| SBA eligible | Yes — SBA 7(a) for smaller firms; strategic acquisitions common |
SBA 7(a) for sub-$3M transactions; strategic acquisition (AEC firm roll-up) above $3M; earnouts tied to project completion; licensure continuity critical; seller transition 12–24 months standard for client relationship transfer.
↑ Stable to rising — architecture firms benefiting from construction boom (2022–2026), data center demand, and education/healthcare facility renovation. Residential architects facing market cyclicality. AEC strategic consolidation active.
Architecture firms typically sell for 4–6× EBITDA or 0.4–0.7× net revenue (fees minus consultant pass-throughs). Commercial and institutional practices command higher multiples than residential-only firms. Backlog quality and licensure continuity are the primary valuation drivers.
Architecture firms bill clients total project fees, often including subconsultant (structural, MEP, civil) pass-through costs. Net revenue equals total billings minus these pass-through subconsultant costs. Since subconsultant costs add revenue without adding architectural firm profitability, buyers and sellers use net revenue for consistent comparison.
Licensure continuity is the most critical transaction risk. If the selling architect holds the only architectural license, the firm cannot legally stamp drawings without them. Buyers require either a multi-year transition (seller remains licensed), buyer holds their own architectural license, or other licensed architects are retained under non-compete agreements.
Yes — residential architecture firms typically sell at the lower end of the multiple range (4–5× EBITDA, 0.4–0.5× net revenue) due to project value cyclicality and lower repeat client rates. Commercial, institutional, and government architecture firms achieve higher multiples due to larger project values, longer client relationships, and more predictable revenue.
Yes — SBA 7(a) is available for architecture firm acquisitions under $5M. The buyer needs relevant architecture or construction management experience. Architectural licensure must be addressed in the acquisition structure — many SBA lenders require the buying principal to hold or be actively pursuing an architectural license.
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